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Q: Home automatoin industry ( Answered 1 out of 5 stars,   0 Comments )
Subject: Home automatoin industry
Category: Business and Money > Economics
Asked by: signatures-ga
List Price: $50.00
Posted: 10 Mar 2003 04:48 PST
Expires: 09 Apr 2003 05:48 PDT
Question ID: 174126
What is the $ sales size of the home automation industry (i.e. "smart
homes" all whole house automation systems, automation devices for the
home.  Not business automatoin?)
Subject: Re: Home automatoin industry
Answered By: ragingacademic-ga on 10 Mar 2003 10:07 PST
Rated:1 out of 5 stars
Dear signatures,

Thanks for your question.  First, let me request that if any of the
following is unclear or if you require any further research – please
don’t hesitate to ask me for a clarification.

You asked – “What is the $ sales size of the home automation industry
(i.e. "smart homes" all whole house automation systems, automation
devices for the home.  Not business automation?)”

Electronic business published the following data and estimates for the
size of the home automation industry in terms of number of households
where networks are in place –

U.S. HOME NETWORKS – includes data, entertainment, home
automation/control networks and hybrids)

            Year         millions of households
            ----	  ----------------------
            2000               2.6
            2001               3.7
            2002               5.4
            2003               8.3
            2004              13.1
            2005              19.1

Another article, published in SDM in September 2000, estimates the
size of the home automation industry at $360 million in 1990, and at
$2.9 billion in 2000.  The article predicts a 20-year growth rate of
705% for the industry.  These numbers are based on research compiled
from the following sources:  The Freedonia Group; Frost & Sullivan;
Hallcrest Division; SAIC; J.P. Freeman; Sandra Jones & Company; STAT

According to a February 2003 article in SDM, the cost of home
automation is typically upwards of $20k per home.  However, the range
varies –

“Pricing varies for systems depending on capability and complexity to
the point that estimating what people would pay is difficult. In
speaking to various integrators, however, systems can sell for as
little as $3,000 for basic home automation to $50,000 for full control
of every electronic function in the home via LCD touch screens, with
custom programming scenarios for the equipment the homeowner is

Interestingly, recently the home automation trend is becoming more
popular –

“While some sources suggest that automation installations can range
from around a thousand to hundreds of thousands of dollars and more,
overall the demand for automation and home networking has moved
down-market from the very rich into the sub-$200,000 house.”

One more estimate for market size comes from Appliance Manufacturer
magazine –

“According to Charles McGrath, executive director of the Home
Automation Association, the home automation market is expected to grow
by 9% this year. The biggest area of growth will be structured wiring
and home networking, which is expected to grow by 100% and reach $500
million in revenues.”

I hope this response adequately addresses your request.  Please let me
know if you are in need of additional information concerning this



Electronic Business, 27 (8): 68, August 2001
Cahners Business Information

“'Tremendous' U.S. Security Industry Growth”
SDM, 30 (12): 18, September 2000
Cahners Business Information

“Step by step to the smart home: contingent on many emerging factors,
the popularity of automation is finally hitting home.”
Security Distributing & Marketing (SDM), 33 (2): 34, February 2003. 
Business News Publishing Co.

“9 percent growth for home automation “
Appliance Manufacturer; Chicago, Jan 2000
by Charmaine Marosi

Search Strategy:

“home” near “automation”

Request for Answer Clarification by signatures-ga on 10 Mar 2003 11:13 PST
This was a good try, and gave me some information I did not have, but
failed to give me anything non-mush.  Home networking and structured
wiring are not really the home automation industry.  What I am tlaking
about are smart home devices -- automated HVAC, lighting, pool and
spa, landscaping, security, entertainment systems...all Subsystems and
full "whole house" coordinated systems that integrate it all.

Please understand, I think I got my money's worth from your answer,
but it was not quite enough. If you have an interest in peeling down
another layer -- to get specific on the home automation industry per
se, I don't have a problem paying more.

Clarification of Answer by ragingacademic-ga on 10 Mar 2003 21:45 PST
signatures -

Thanks for your comments.

I will try and find more detail on these numbers - give me a couple of days.


Clarification of Answer by ragingacademic-ga on 27 Mar 2003 12:12 PST
Dear signatures -

My apologies for not returning to this question as promised.
As sometimes happens to all us humans, it had slipped my mind.
I would, of course, have tackled the issue more if you would have been
so kind as to remind me.

Let me just note for the record that my initial reply did address your
question exactly as posed - again, I would have been happy to carry
out additional research without pay had you reminded me, and I
apologize you were not satisfied with my performance in this instance.


Request for Answer Clarification by signatures-ga on 27 Mar 2003 13:27 PST
Actually, my apologies.  My comments before were far too harsh.  I
know the effort that you must have put into the answers (as well
documented by you ). I think I am just asking for information that
probably is too discrete, available -- if at all -- only through
private research.

So, I am satisfied with the first effort anyway.  If you do have other
avenues to find additional info, I would be pleased to pay for a
second round.

Clarification of Answer by ragingacademic-ga on 28 Mar 2003 10:12 PST
signatures -

Thanks for your comments.
A 1-star rating is actually pretty detrimental to us researchers, and
your clarification will help when the editors look at this. 
Unfortunately, ratings can't be changed once entered.  I believe this
is to ensure that we don't haggle with customers over ratings ;-)

If you would like more work done on this, why don't you post a new
question, directing it to me in the subject line, e.g. "More on Home
Automation (for ragingacademic only)"?  I'll do my best to complete
the picture for you.

signatures-ga rated this answer:1 out of 5 stars
Did not really answer my question, although it was probably
information unobtainable with public data.   Not really worth what I
paid, although generally the effort was okay.  I never received
further effort towards clarification from the researcher, perhaps
because the researcher got paid either with or without trying again.

There are no comments at this time.

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